Presented By
Alfonso Bucero, PMP
BUCERO PM Consulting
www.abucero.com
When you know a thing, to hold that you know it, and when you do not know a thing,
to allow that you do not know it—this is knowledge. —Confucius
The problem with the future is that more things might happen than will happen. —Plato
Presentation Objectives
Risk
Management
 This case study highlights steps in a process to facilitate and roll out an
improved risk management process within a professional culture
[biotechnology] and identify strategies for success…or not.
 Purpose:
• Present a viable approach to risk management implementation that can be
readily applied in any environment.
 Lessons to be illustrated:
• Identify clear roles and responsibilities for risk management at all levels
across the organization
• Address the terms and drivers that teams can use to improve risk planning
• Develop meaningful action plans and get commitment to follow them
• Explore steps to follow through on risk implementations
• Explore the use of case studies and live examples in training as a key
ingredient of a risk management initiative.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Problem Statement
 Have you ever had :
• Team members question the value of risk analysis
• Team be unprepared for a risk
• Difficulty with the risk analysis process
• Looked back on a project and thought “hum….could we
have prevented that?”
• Wondered if “Could we have reacted differently?”
© 2009 Randall L. Englund www.englundpmc.com
2
Risk
Management
Corporate Response
 Management picked Risk Management as one of three
initiatives to focus on for the current year
 Sponsor and project team assigned
 Contracted Englund Project Management Consultancy
• not to train on risk management, but to
• facilitate application of the process
 Conducted initiative as a project
 Met regularly to design, develop, and deliver training.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
© 2009 Randall L. Englund www.englundpmc.com
4
Risk
Management
My Approach - Assessment on Risk
Management
 Interviewed a cross-section of managers (18) to elicit inputs about the process and
how to improve it
 Sample findings:
• Current forms appear bulky, are barely useable, and are not required during review
proceedings. Consequently, few projects use them. Forms need to be easily
accessible and streamlined to guide teams through key items impacting projects,
utilizing XXX terminology.
• Current process conducted at superficial level; concerned about pushing through
w/o considering resource issues
• Need business rules of governance; have agreement on process by management
& teams
• Focus on fewer but deeper, tangible items that can do something about
• Keep it simple and visible
• Cover how to conduct risk management and provide examples.
© 2009 Randall L. Englund www.englundpmc.com
5
Risk
Management
Reasons to Have a Risk Management Plan
 Part of good planning
• Principal benefit: engaging in a productive process
• Unknown risks cannot be managed proactively
• Preliminary read on feasibility
 Life with a good risk management plan in place
• Increased likelihood of success
• Time is on your side = less stress
• External benefits (outside team).
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Overcoming the Perception that “There is No
Time” for Risk Management
 Educate the team about how formulating a risk
management plan is implicit to good planning
 Benefits of proactive plans vs reactive actions
 Best illustration: relevant, real life examples
• Meaningful to them (WIIFM)
• Motivation.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Purpose of Workshop
 Improve the risk management process used within the
XXX organization
 Roll out a refined, simple process that can be easily duplicated
across all project teams
 Reduce ambiguity about risk management terms and process
 Ensure that risk analysis and plans are conducted, communicated
and updated on project teams in a consistent manner
 Provide simple tools that allow project managers to work with your
teams and prepare consistent, value-add risk management plans
 Identify roles and responsibilities of all stakeholders.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Workshop Outline
Module One –Risk Definition, Identification
 Define risk and risk management process consistently
 Identify risks
Module Two—Risk Qualification
 Capture risk probability and impact
 Develop risk register
 Prepare to develop action plans to address high priority risks
Module Three—Risk Planning
 Prepare action plans
 Plan monitoring mechanisms
Module Four—Risk Communication
 Monitor and control risks
 Communicate and manage the risk management process.
© 2009 Randall L. Englund www.englundpmc.com
9
Risk
Management
Define Terms: What is Risk?
 A risk is an uncertain event or condition which, if it occurs, will have a positive
or negative effect on a project’s objectives
 All projects have risks
 All assumptions are risks
 Risks cannot be eliminated but can be understood
 Components of a risk:
• Uncertain event; probability; impact
• Time driven; consequence
 Risk management addresses events that may adversely impact a project’s
stated outcome.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Risk, Outcomes, & Issues
 A risk is an uncertain event or condition, if which it occurs, will have a positive
or negative effect on a project’s objectives
 An outcome is the result of a risk event
 An issue has 100 percent certainty; risks are uncertain
 The risk management process seeks to identify and act on cause elements or
drivers rather than outcomes or effects
 For example:
• Instead of, “Agency does not agree that safety data is sufficient.”
• State,“As a result of the trial design selected, there is a chance that the safety
database may fail to meet Agency requirements; the need for additional studies will
cause a 6-12 month delay and increase costs.”
“As a result of <an existing condition>, there is a <probability> that an
<uncertain event> may occur, which would result in <impact on objectives>.”
© 2009 Randall L. Englund www.englundpmc.com
11
Risk
Management
The Risk Management Process
Avoid
Do Something
Now
Prevent
Probability
Mitigate (Minimize)
Resolve
Issue
Possible
Risk
Event
Do Something
Later
Contingency Plan,
Trigger Points
Trigger
Happens
Mitigate Issue
(Minimize Impact)
Impact
Do Nothing
Accept
“As a result of <an existing condition>, there is a <probability> that an
<uncertain event> may occur, which would result in <impact on objectives>.”
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Develop Simple Tools: Risk Register
Risk, Impact, & Timing
As a result of <an existing condition>, there is a
<probability> that an <uncertain event> may occur,
which would result in <impact on objectives>.
Priority: Prob/Impact
R: Red Y: Yellow G: Green
H: High M: Medium L: Low
Response
OWN: Owner
PRE: Prevent
TRG: Trigger
MIT: Mitigate
1: Safety Database
A lack of regulatory precedent with
combination biologics means FDA may
require a larger safety database (x000
patients) than the y00 patients currently
included in the clinical program. Above x00
patients, XXX would kill the program (low
value), but collaborator would likely want to
continue program (market valuation is higher
than XXX's)
R: M/H
OWN: J___
PRE: Submit current safety data from ongoing studies for each individual
molecule to FDA
TRG: End of Phase II Meeting
MIT: Estimate costs using x00 patients. Include contract terms for XXX to
terminate if the study becomes significantly large and costly
Y: M/M
OWN: J___
PRE: Contract with collaborator's experienced with these patient populations.
TRG: 25% of target patients not enrolled by Jun 30, 200x
MIT: Add more sites
Y: M/M
OWN: J___
PRE: Test concepts with users prior to developing a working prototype
TRG: Device fails the first user study
MIT: Plan for at a redesign in the timeline and in the vendor contract. Gate
high cost activities (i.e. scale-up) to a successful user study.
2: Patient Enrollment
Since we are dealing with a new patient
population, Phase III enrollment may go
slower than estimated, resulting in a 1-2 Qtr
delay and 10% increase in trial costs
3: Device Design
The proposed device design is entirely new
to this patient population and may not be
successful in user studies. Result is up to 2
Qtr delay for redesign
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Establish Roles & Responsibilities (1)
 Project Team Leaders
• PTLs are accountable for risk management, ensuring a plan is
created and implemented; this accountability is a key step to ensure
suitable emphasis on risk management is present.
 Project Managers
• PMs are accountable for creating and implementing the risk
management plan (by using the pre defined process), ensuring that
initial risk analysis happens early in the project and thereafter, is
presented for review, executed, and tracked aggressively during the
project. They accurately reflect technical risks in the PTS and non
technical risks in final asset valuation (FAV).
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Roles & Responsibilities (2)
 Core Team Members
• Team members are accountable for identifying risks, preparing
action plans, getting buy-in from functional area management,
executing plans as required, identifying triggers for risk elements
and contingency plans for dealing with risks if they occur, report
accurate status regularly.
 Directors/Senior Managers
• Directors and Senior Managers are accountable to review and
approve functional risk management plans per the PDP process.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Roles & Responsibilities (3)
 Facilitator
• The facilitator is accountable to get a thorough job done most
efficiently and to stay on track.
• The PM facilitates the risk analysis process or may want to be more
of a participant. In that case, bring in an outside facilitator familiar
with the risk management process.
• The facilitator may come from another project, a different group, or
be an external consultant.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Identify Challenges of Risk Management
 Organizational resistance
• Resistance to the process
• Question the value of risk analysis
• Busy dealing with “real” issues
 Operational pitfalls
• Ignoring team preferences /cultural norms
• Universal risks
• Focused on outcome, not drivers
• Not tying risk to tangible outcome
• Not keeping plan “alive”
Look at total project risks but especially emphasize
risks getting to next stage gate or milestone
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Clarify Results of Good Risk
Management
 Increase PTS and overall project success:
• All risk management practices that increase Probability of Technical
Success (PTS) are of interest to upper management
• Risk management, however, also applies to elements beyond technical
factors
 Gate overall investment:
• Consistent risk analysis indicate where investments need to be made to
improve project success
• High risks integrated into development plans and other standard
processes
 Drive focus on essential value drivers (instead of “all inclusive" lists):
• Focus on risks that have a significant impact to the next project milestone
• Present a few key factors considered with well thought through
mitigation and contingency plans that directly relate to value-generating
activities.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Establish Standards
 Each project Core Team develops and maintains standard risk
management plans in accordance with this process.
 Through well defined roles and responsibilities with regards to risk, all
individuals accept accountability for the overall success of the project.
 Risk management impact, probabilities, triggers, and mitigation or
contingency plans are near term, realistic, and based on expert
judgment and historical data, with input from operational experts.
 Each risk has an owner.
 Risk management is a continuous process; focus is on next milestone.
© 2009 Randall L. Englund www.englundpmc.com
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Focus on Drivers
Risk
Management
 As a consequence of [driver], there is [probability] that
[result] will happen, causing [impact].
Not effective
Phase I clinical
Better
Phase I clinical trial
Best
As a consequence of low enrollment
trial may take too may not meet
rates, there is an 80% chance that
long.
enrollment target in
Phase I clinical trial may not meet
desired time frame.
enrollment target by Q3 200x, which
will delay Phase 2 startup activities by
3 months.
© 2009 Randall L. Englund www.englundpmc.com
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Understanding Risk Events
Risk
Management
 Ask probing questions:
• “Why?”
• “What makes you think that?’
• “Why do think this is important?”
• “Who else would be impacted?”
• “Have we encountered this before?”
–“If so, what was done?”
 Think about root cause(s)
• What drives the risk to occur?
• When evaluating risks, other follow on risks may be identified.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
How to Write Better Risk Statements
 Don’t focus on undesirable outcome
 Instead, identify specific drivers
• An undesirable outcome, many different drivers
• Different drivers can lead to same outcome
• Different drivers, different response plans
 Word risks such that response plans
(mitigation/contingency) can be crafted
 Elucidation can be challenging
• Ask “Why?” repeatedly
 Practice.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Risk Identification Brainstorming Tools
Technique
Works Best When:
1. Group Discussion
There are a only few major risks that are commonly
known on the project and can quickly be discussed.
If there are too many risks this discussion will
consume a lot of time.
• PM facilitates an open group discussion
• or PM can come prepared with a list of risks based on prior
team discussions and ask the group to comment on the list
2. Post-It Notes
Hand out 3-5 post-it notes to each team member. Write down
1 risk per note and hand them back to the PM. This can be
done at the end of the meeting (and then continued in
subsequent meeting) or at the start of a risk assessment
meeting
3. E-mail to PM prior to meeting
Team members requested to send risks to PM in advance of
the meeting
4. 1:1 Meetings with technical experts
Meet with sub-team leaders individually or in small groups to
generate a list of risks for their function and for the overall
project.
5. Good Questions to ask to elicit risks
•
•
Either to save time or if you have strong
personalities that tend to quiet other team members
from openly stating risks
Can save time and if team members are good about
e-mailing responses
Time intensive for PM, but minimizes team time.
Enables a more in-depth discussion of a specific
function’s risks. Also works well for quiet team
members or if strong personalities tend to
overpower the group
Always
What keeps you up at night?
What worries you the most on this project?
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Why Do We Prioritize?
We:
 Categorize risk events based on their probability of occurrence AND
the magnitude of the impact if they do occur
So that we can:
 Compare risks
 Identify which risk events must be acted upon vs. those that merely
need monitoring
 Focus efforts on the more critical risks.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Use a Common Risk Probability Chart
Likelihood of Risk Occurring
Probability
High
≥ 75%
Medium
> 25% to < 75%
Low
≤ 25%
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Probability Estimation Tools
Technique
Works Best When
1. Group Consensus
You have a small group and the issue is not contentious.
Also works well when further discussion is required to
understand the risk and assign it a probability
2. Silent Vote (post-its)
The issue is contentious and subject to argument. Also
makes the vote more “official.”
3. Voice vote
Team members are comfortable expressing their
assessment openly in front of the group. Requires strong
facilitation to avoid discussions breaking out
4. E-mail vote
You don’t have time to hold a meeting and the risk requires
no / minimal further discussion.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Use Common Risk Impact Chart
[EXAMPLE ]
Strategic context: fast time to market
Impact of
Risk
Timeline
Delay
Development
Cost Increase
High
> 2 Qtr
> 50% of Budget
Medium
< 2 Qtr
< 30% of Budget
< 25%
Low
< 1 Qtr
< 10% of Budget
< 10%
© 2009 Randall L. Englund www.englundpmc.com
Value Loss
> 50%
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Risk
Management
Impact Assessment Methods
Technique
Works Best When
1. Back of the Envelope, on the spot
An order of magnitude estimate is needed and precision
is not important. Useful in moving rapidly through the risk
assessment and in setting priorities.
2. Off-Line by sub-team leaders
A deeper dive is needed and precision is important.
Works well in preparing recommendations for senior
management approval, for assessing highly complex
risks, or for high priority risks
© 2009 Randall L. Englund www.englundpmc.com
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Develop a Risk Matrix [WHAT IF?]
Risk
Management
Impact of Occurrence
#
High
= Risk Identification number
2
4
15
1
3
5
6
7
Medium
14
13
12
Low
0 < Low ≤ 25%
25 < Med < 75%
8
10
9
11
75 ≤ High < 100%
Risk Group:
Probability of Occurrence (%)
RED
YELLOW
GREEN
Assign owner and develop action plan to be implemented immediately as part of the PDP.
Assign owner, develop a contingent action plan, define trigger points that signal
activation of the plan. Include in PDP as possible requirement. Monitor the situation.
Monitor and address if classification changes.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Managing Risks (1)
 Avoidance and prevention plans normally affect probability of
risk event drivers
• Avoid the risk by reversing decisions that involve unnecessary risks
that do not offer potential benefit
• Transfer, subcontract, or outsource the risk to another entity
• Plan actions that minimize probability of risk occurring
• Design redundant, duplicate, parallel solution, or alternative path(s)
 For example,
• “Avoid risk by choosing not to pursue device”
• “Prevent risk by testing concepts with users prior to developing a
working prototype”.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Managing Risks (2)
 Contingency plans normally affect impact
• Identify triggers that warn the risk is about to occur or indicate it has
occurred
• Mitigate risks (make less severe) through response plans
(contingencies)
• Target root causes
• Prepare preliminary cost and resource requirements for contingency
plan
• Decide who is risk owner and how to monitor the risk
 For example,
• “Device fails the first user study” is a triggering event
• “Gate high cost activities to a successful user study” is a contingency
plan.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Considerations
 Be realistic and careful in planning project objectives, costs, and
deadlines
 Address Red risks immediately as part of the development plan
 Focus detailed planning on Yellow risks
 Consider :
• Unknown risks that may occur
• Issues that still occur despite prevention and contingency plans
• Low priority risks that received little action
• Accepted risks that occur
 Even with good prevention plan, still need a contingency plan.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Develop Action Plan
 An objective
 Means of measuring when the objective is achieved
 Completion date
 Owner
 Prepare budget requirements
 Adequate funding and resources available.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Plan Monitoring Mechanisms
 Include Risk Register in project documentation
 Decide how to report regular risk status
 Make risk triggers meaningful and visible
 Make commitments to:
• Engage in regular dialogue about risks
• Present at management reviews
• Focus on value-generating activities.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Identify Next Steps (1)
 The Risk Register is complete - now what?
• Red risks: Incorporate into plans (schedule, budget,
and collaborator contracts). All timelines presented to
review committees must incorporate activities required
to resolve red risks
• Yellow risks: Prepare contingency plans with impact to
cost and timeline understood
• Green risks: Do nothing - monitor for changes.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Next Steps (2)
 Review risks at phase change and/or when new data becomes available
• Is this risk still a risk?
• Has this risk increased/decreased in priority, probability, or impact?
• Have new risks emerged? (and how to manage these new risks)
 Step back and look at overall risk profile for the strategy being followed:
• How many red risks have been identified?
• How do these red risks affect the timeline and costs?
• Is this project worth pursuing?
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Develop Communications Plan
 Integrate risk management plan into communication tools
 Update Risk Register and review with teams
• Monthly for short term risks/milestones
• When something happens
• Quarterly for long term milestones
• Annually
 Reports
• Weekly reports in news or issues section - changes only
• Monthly tracking sheets/reports
• Product development plans.
© 2009 Randall L. Englund www.englundpmc.com
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Presenting to Review Committees
Risk
Management
 Portfolio Committee – Focus on strategic impact (not tactical)
• Red Risks Included in Currently Proposed Timeline and Budget
1. …
2. …
3. …
• Yellow risks – Contingency Plan Costs:
– Identify the Risk
– Summarize approach of the Risk Response Plan
– Identify incremental costs of the Contingency Plan
– List triggers, timing, and/or gating factors
– Identify benefits of the response plan
- Consequences if not done.
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management

Example Case Study
XXX is exploring two molecules with different Mechanisms of Action
(MOA’s) along the same metabolic pathway to take into
development for the treatment of cancer. Both molecules appear to
have some promise, but data from YYY models is highly variable. A
strong competitor in this indication was expected to get approval
next year with a molecule that shares one of the MOA’s, but it failed
to reach its primary endpoint in a pivotal Phase III study. In three
weeks, upper management would like to be able to report to the
Board of Directors (BOD) that a molecule has been selected.

What are the risks?
XXX Confidential – For Internal Use Only
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Risk Identification Exercise
 For the case study assigned to your team:
• Decide what Risk Categories apply
• Brainstorm potential risks (~5–10)
• Identify drivers of each risk event
• Describe impact if the risk occurred
• Identify potential timing of risk
 Look for:
• Factors that may decrease (or increase) PTS
• Known events that could impact project value
• Known unknowns that may require investment to avoid or overcome
• Unknown unknowns that jeopardize project success
 Be prepared to:
• Fully describe the risk event
• Characterize why the risk was identified (historical data, experience, trends, …)
© 2009 Randall L. Englund www.englundpmc.com
40
Risk
Management
Risk Prioritization Exercise
 For the case study assigned to your team:
• Define criteria for probability and impact
• Select probability and impact for each risk
• Prioritize the risks by assigning to a Risk Group
• Rank the risks within the Red group
• Fill in the template
 Look for:
• Factors that may decrease (or increase) PTS
• Known events that could impact project value
• Known unknowns that may require investment to avoid or overcome
• Unknown unknowns that jeopardize project success
 Be prepared to:
• Fully describe the risk impact
• Characterize what drives risk likelihood (historical data, experience, trends, …)
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management

Risk Planning Exercise
For the case study assigned to your team:
• Discuss overall risk response
• Develop prevention steps for top priority (~1-3) risk drivers
• Identify triggers that the risk is occurring
• Develop contingency plans to mitigate impact
• Consider alternatives
• Make recommendation
• Fill in the template

Look for:
• Factors that may decrease (or increase) PTS
• Known events that could impact project value
• Known unknowns that may require investment to avoid or overcome
• Unknown unknowns that jeopardize project success

Be prepared to:
• Fully describe the risk response plan
• Provide justification for action (losses, benefits, drive value…)
© 2009 Randall L. Englund www.englundpmc.com
42
Risk
Management
Risk Action Item Exercise
 For your project(s) at XXX:
• Prepare an action plan
–How you will integrate risk management into team activities
–How to overcome implementation hurdles
• Example:
–Objective: Implement a more effective and efficient risk management process utilizing a
consistent tool set
–How: Plan a risk management agenda for next team meeting; put together slide set to introduce
the process, combining material from workshop with project specific materials; share the
distinction between reducing probability of risk occurring and minimizing impact once the risk has
occurred; commit to presenting high impact plan to review committee, focusing on top three risks;
monitor other risks at monthly meeting
–Hurdles: Need to work with “Jack” to develop a positive attitude about the process
 Be prepared to:
• Share your approach; receive answers; give feedback to others
• Fully describe the risk management action plan
• Identify areas needing further assistance
© 2009 Randall L. Englund www.englundpmc.com
43
Risk
Management
Risk Communication Exercise
 Using a knowledge café approach, brainstorm with team members, addressing the
topics:
• Ways to monitor and control risks?
• Hurdles to implementing risk management?
• How to measure successful risk management?
 Directions:
• Add the assigned topic to the top of a flipchart.
• Brainstorm the topic and record your response on the flipchart. (Approximately 10
minutes)
• Rotate (clockwise) to the next chart. Brainstorm the new topic and add your
responses. (Approximately 5 minutes)
• Rotate (clockwise) to the next chart. Review the information on the flipchart,
brainstorm, summarize key points, and record responses. (Approximately 10
minutes)
 Debrief the topic in summary form
 Other concerns?
© 2009 Randall L. Englund www.englundpmc.com
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What to Expect
Risk
Management
 This risk management process is a first step
 Do it, see what works well, what to improve – your involvement and
feedback are crucial
• Share risk experiences with other PMs
• Address best and worst practices at Forums
 Potential future enhancements:
• More sophisticated risk management tools and tracking
–Improve online reporting tools
–Establish relational database
• Process refinement
•…
© 2009 Randall L. Englund www.englundpmc.com
45
Risk
Management
Conduct Summary Quiz
 Why is risk management important for projects at XXX?
• Since only 10-25% of projects in clinical development reach market, risk
management is an effective tool to minimize risks, increase probability of projects
reaching market and coming in on budget and on schedule
• All projects have risks; we have to manage them better to achieve our commitments
 What three areas does senior management want teams to focus on for risk
management planning?
1. Improve probability of technical success
2. Gate overall investments
3. Focus on key value drivers
 What elements go into a complete risk statement?
• “As a result of <an existing condition>, there is a <probability> that an <uncertain
event> may occur, which would result in <impact on objectives>.”
 How do you plan for a potential risk?
• Analyze, avoid, prevent, mitigate; prepare action plan with triggers & contingences;
communicate
 Risk management is a one time exercise? (True/False)
© 2009 Randall L. Englund www.englundpmc.com
46
Risk
Management
Ensure that the Risk Management Plan Stays
“Alive”
 A risk management plan is created
• Beginning of project
• Beginning of given phase
 Living document - valuable reference / guide
• Celebrate successes in averting disasters
• Analyze potential plan improvements real-time
• Incorporate as part of daily lives
• Share examples
 Reviewed/revised
• Whenever there is a change
• Pre-determined review schedule
• Part of “business as usual.”
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Reminders
 All projects have risk; our mission is to manage the risks
 Avoid or prevent risks by focusing action on what drives risks to occur
 For risks you cannot prevent, identify clear triggers to warn when risks
are about to or have occurred
 Develop a contingency plan to minimize impacts of risks that occur
 Focus on near term, actionable risks
 Document alternative approaches in a Risk Register
 Communicate about risks with all stakeholders
 Be willing to speak truth to power
 Make the commitment to manage risks, achieve greater project
success, and improve the risk management process.
© 2009 Randall L. Englund www.englundpmc.com
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Looking Forward
Risk
Management
Leadership
Learning
Means
Motivation
[PROPOSAL to Management]
PBO,
PTL,
Upper Mgrs
Program Mgrs
• Express interest
• Ask questions
• Expect focused,
Project
Managers
• Accept & demonstrate
• Lead by example in using appropriate risk
detailed analysis
• Follow through
accountability for better
RM practices
• Participate
• Inquire about status
management terminology and applying
techniques on all projects
• Facilitate effective and efficient risk
management sessions
• Overview training at
• Overview training
staff meeting(s)
• Share ways to
encourage compliance
• Updates on progress
session
• Review available
materials
•
•
•
•
Attend risk management training session
Participate in refresher session
Share practices in Forum sessions
Read about risk examples in memos,
reports, reviews, …
• Sponsor training
• Support teams to
sessions
• Be present
• Use appropriate risk
terminology
conduct risk analysis
• Provide feedback on risk
analysis & reports
• Update PDF forms
•
•
•
•
•
Training reference documents
Risk Register
Online examples & ease in reporting
Time allocated to risk discussions
Management expectations
• Enthusiastic about risk
• Reinforce necessity to
• Training provides the L2M2 to adopt, adapt,
management
contribution
• Expect template use
• Expect results
improve RM practices
• Reward effective &
efficient practices
& apply risk management techniques
• Believe results are worth the effort
• Positive consequences from management
attention & rewards
© 2009 Randall L. Englund www.englundpmc.com
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Risk
Management
Conclusions
 Facilitating Risk Management into a Corporate Culture
requires:
• Upper management support
• Clear roles and responsibilities across the organization
• Common terminology, simple templates
• Focus on drivers
• Meaningful case studies, tailored to the organization
• Practice, with feedback
• Reinforce through periodic forums
• Follow through.
© 2009 Randall L. Englund www.englundpmc.com
50
References
Risk
Management
Englund Project Management Consultancy
www.englundpmc.com
englundr@pacbell.net
© 2009 Randall L. Englund www.englundpmc.com
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